Moody's Investors Service says South Korea is on course to post three percent GDP growth this year, citing the country's diversified and competitive economy with strong potential for high income levels.
It added that South Korea has a very strong institutional framework that bolsters its resilience to potential financial risks.
The agency however, put the country's growth for next year slightly lower at two.eight percent, saying elevated geopolitical risks surrounding North Korea are a key credit constraint.
Looking ahead, Moody's was optimistic Asia's fourth largest economy will be able to maintain growth around the three percent level over the coming five years.